Strattec Security (NASDAQ: STRT) and Gentherm (NASDAQ:THRM) are both small-cap auto/tires/trucks companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, dividends, institutional ownership, analyst recommendations, profitability and earnings.
Institutional & Insider Ownership
82.0% of Strattec Security shares are owned by institutional investors. Comparatively, 95.5% of Gentherm shares are owned by institutional investors. 7.1% of Strattec Security shares are owned by company insiders. Comparatively, 2.3% of Gentherm shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.
Strattec Security pays an annual dividend of $0.56 per share and has a dividend yield of 1.5%. Gentherm does not pay a dividend.
Volatility & Risk
Strattec Security has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500. Comparatively, Gentherm has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500.
Earnings and Valuation
This table compares Strattec Security and Gentherm’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Strattec Security||$417.33 million||0.33||$7.19 million||N/A||N/A|
|Gentherm||$985.68 million||1.31||$35.22 million||$2.31||15.17|
Gentherm has higher revenue and earnings than Strattec Security.
This table compares Strattec Security and Gentherm’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of current recommendations and price targets for Strattec Security and Gentherm, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Gentherm has a consensus price target of $37.40, suggesting a potential upside of 6.70%. Given Gentherm’s higher probable upside, analysts plainly believe Gentherm is more favorable than Strattec Security.
Gentherm beats Strattec Security on 10 of the 13 factors compared between the two stocks.
About Strattec Security
Strattec Security Corporation engages in the design, development, manufacture, and marketing of automotive access control products under the VAST brand primarily in the United States. The company offers mechanical locks and keys, electronically enhanced locks and keys, steering column and instrument panel ignition lock housings, latches, power sliding side door systems, power lift gate systems, power deck lid systems, door handles, and related products. It also provides full service and aftermarket support services for its products. The company markets its products to automotive and light truck original equipment manufacturers, as well as other transportation-related manufacturers; and through wholesale distributors, other marketers, and users of component parts, as well as certain products to non-automotive commercial customers. It also exports its products to Europe, Asia, and South America. Strattec Security Corporation was founded in 1908 and is headquartered in Milwaukee, Wisconsin.
Gentherm Incorporated designs, develops, and manufactures thermal management technologies in North America, Europe, and Asia. The company operates through two segments, Automotive and Industrial. The Automotive segment offers automotive seat comfort systems, including seat heaters, variable temperature climate control seats that are designed to provide individualized thermal comfort to automobile passengers; and integrated electronic components, such as blowers and electronic control units. This segment also provides specialized automotive cable system products, including ready-made wire harnesses and related wiring products; automotive steering wheel heaters, heated door and armrests, heated and cooled cup holders, and thermal storage bins; and non-automotive products comprising heated and cooled mattress and furniture. This segment serves light vehicle original equipment manufacturers (OEMs), commercial vehicle OEMs, and automotive seat manufacturers. The Industrial segment offers remote power generation systems, patient temperature management systems, and environmental testing equipment and services. The company was formerly known as Amerigon Incorporated and changed its name to Gentherm Incorporated in September 2012. Gentherm Incorporated was founded in 1968 and is headquartered in Northville, Michigan.
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